BIO-LNG demand accelerates across europe as market matures

Bio-LNG is no longer being treated as a niche fuel within European shipping. According to Greensteps trader Halil Gündogan, recent developments across the market show that demand is accelerating and the sector is moving into a more mature phase.

“What we are seeing now is a shift from early adoption into real commercial scale,” says Halil Gündogan. “The market is becoming more structured, infrastructure is improving, and companies are committing for the longer term.”

Several European ports have reported strong growth in bio-LNG activity over the past year. In Rotterdam, bio-LNG bunkering volumes increased more than sixfold in 2025. Zeebrugge recorded a 73% rise in demand, while ports such as Klaipėda are moving beyond pilot projects through coordinated bunkering operations.

Longer-term supply agreements are also becoming more common. One example is the extension of the partnership between Gasum and Wasaline through 2027, signalling growing confidence in bio-LNG as a dependable fuel option rather than a temporary solution.

According to Gündogan, the combination of higher volumes, operational infrastructure, and longer contract duration is an important signal for the market.

“Bio-LNG is no longer just available in theory,” he says. “It is becoming a practical and reliable option for companies that need to reduce emissions today.”

Much of the momentum is being driven by regulation. FuelEU Maritime is increasing pressure on shipping companies to lower lifecycle emissions, while bio-LNG offers a solution that works within existing LNG infrastructure. That compatibility removes a significant barrier for shipowners and operators looking to decarbonise without completely rebuilding fuel systems.

Supply remains relatively limited, but the market is gradually becoming more accessible as production capacity and trading activity continue to expand across Europe.

At Greensteps, this shift is already visible in day-to-day commercial activity. Demand is increasing from both shipping and industrial clients looking for secure supply and longer-term agreements.

“Our role is to make these transactions workable in practice,” Gündogan says. “That means sourcing and supplying bio-LNG, structuring long-term offtake agreements, and connecting producers with end users across Europe.”

While bio-LNG is unlikely to be the final destination in the energy transition, it is currently one of the few lower-carbon fuel solutions scaling at commercial level.

“The key question now is how quickly supply can grow to keep pace with demand,” Gündogan says.